Hoffman may have done his best work as a performer with Anderson as well as the most versatile. How can one imagine the lovelorn Scotty, the caring nurse and the hard driven religious founder came out of the same performer? Only Hoffman's overdose no doubt stopped their continued collaboration.
Personally I think the late Philip Baker Hall did the best work of his career under Anderson. I saw Hard Eight on VHS when it came out, it was one of the great performances from one of the greatest character actors of all time.